Business

PRIVATIZATION OF 100 MAJOR INDUSTRIAL ENTERPRISE ANNOUNCED

By Elmira Vezirova Azernews Staff Writer

National newspapers have published presidential decrees and resolutions signed Thursday. The covenants are dedicated to privatization of major industrial enterprises as part of the "Second state program of privatization of state property". Both local and foreign investors can take part in privatization.

17 enterprises of the "AzerKimya" state company are slated for privatization. These are the Sumgayit plant of domestic chemicals and the super-phosphate plant, the Baku tyre, iodine, pharmaceuticals and rubber works, the Salyan plastic plant, the Neftchala iodine plant, the Mingachevir glass fiber and technical rubber plants, as well the "Regenerator" works, the "AzerIsolyte" research group, the foreign economic enterprise of the "AzerKimya" state company, the Garadagh rubber mixture plant, the Institute of advance of qualification of "AzerKimya" state company, the Azerbaijan state scientific research institute "Olephyny", and the state scientific research institute of chemicals of the "AzerKimya" state company.

The "AzNeftKimyaMash" state-owned company has been abolished and an Open Joint Stock Company (OJSC) "AzNeftKimyaMash" is being established on the basis of 18 enterprises and organizations. The OJSC will include the Sattarkhan mechanical engineering works, the Kishli mechanical engineering plant, the B. Sardarov mechanical engineering works, the Zabrat mechanical engineering works, the "Bakinski Rabochi" mechanical engineering works, the Baku mechanical engineering works, the Surakhani mechanical engineering works, the Baku plant of oil and gas industry equipment, the Baku plant of oil-field engineering, the Sabayel mechanical engineering works, the Balakhani mechanical engineering works, the 28 May mechanical engineering works, the experimental works "AzNeftMash", the Sabunchu experimental enterprise, the Azerbaijan scientific research and project institute of oil-field engineering "AzInMash", the Azerbaijan institute of mechanical engineering technologies, the oil and gas equipment bureau, and the Azerbaijan state project institute for mechanical engineering and metal processing enterprises. The charter capital of the OJSC "AzNeftKimyaMash" will be made up of shares of joint stock companies set up on the basis of the mentioned enterprises and organizations, as well as the property of the abolished "AzNeftKimyaMash" state company.

The following enterprises are being transferred to the disposal of the Ministry of State Property: the nitrogen and oxygen plant, the Imishli mechanical repair enterprise, the marketing center and the "Mechanical engineer" sanatorium.

The following enterprises of the mechanical engineering sector have been announced as open to privatization: the "AzerElectroMash" scientific and production unit, the "AzerElectroTerm" scientific and production unit, the "BakConditioner" scientific and production unit, the "AzerElectroIshig" production unit, the "AzerDesgahSanaye" production unit, the "AzYolMash" production unit, the "Chinar" production unit, the Mingachevir "ComplexHeyMash" production unit, the "Orbit-Service" production unit, the central foundry, the 7th state wheel bearers plant, the Baku automobile plant, the "ZeyamKendMash" plant, the "Moskvich" technical services unit, the "Khazar-Lada" closed joint stock company, and the Baku limited company "KamazAutoCenter".

The "Biyan" production unit is being abolished, while the liquorice producing and processing enterprises in its balance are being transferred to the Ministry of State Property for subsequent privatization.

Also open to privatization are enterprises of the fuel and energy sector. The Ministry is to determine a mode of their privatization and, if necessary, its limits. The presidential resolution says that mainly auxiliary enterprises within offshore and onshore oil and gas production units are to be privatized. A total of 70 SOCAR enterprises, 8 of "AzeriGas" and 3 of "AzerEnergy" are on the list.

$2.8BN NEEDED TO IMPROVE BAKU WATER-SUPPLY

A complete solution to the water-supply problem of Baku requires $2.8 billion, while the government last allocated anything to the sector in 1989. This was announced in a news conference at the "Yeni Azerbaijan Party" Friday by the chairman of the Absheron Regional Water Joint Stock Company Ogtai Asadov.

According to him, the main problem is the obsolescence of water pipes and equipment of pumping stations. Another reason for the shortage of water is its uneconomical spending by the population.

Mr. Asadov said the experimental installation of 5,000 water meters in Baku apartments resulted in reduction of water loss from 18 to 8 cubic meters per apartment. Touching upon payment for water consumption, Mr. Asadov said despite the cost value per cubic meter of AZM404, water is being sold the population for AZM185, while elsewhere in the world the figure stands at $1. He didn't rule out the possibility of increasing the tariff.

IMISHLI-PARSABAD LINE PUT INTO SERVICE

The 230KV Imishli-Parsabad electricity transmission line was put into service Tuesday. The line has been built on an inter-governmental agreement between Azerbaijan and Iran on parallel use of electrical energy.

The ceremony was attended by dignitaries from both countries, a source from the "AzerEnergy" JSC told AssA-Irada Tuesday.

The line is 51km long. It is expected to transmit 50MW of electrical energy and improve electricity supply to Nakhchivan.

AZERI, FINNISH AUTOMOBILE WORKERS ABOUT TO AGREE ON INT'L PROJECT

Automobile transport agencies of Azerbaijan and Finland are close to agreeing on a draft agreement "On international automobile transports" between the two countries. According to the "AzerAutoNagliyyat" state concern, the only question left to be agreed upon is the one of taxation. The Azerbaijan party does not agree to the suggestion to exempt Finnish transport workers from all tax, as talks are ongoing.

"AzerAutoNagliyyat" has prepared drafts of 20 inter-governmental agreements "On international automobile transports" with different countries, which are expected to be agreed upon before the end of this year.

GOVERNMENT SEEKS TACIS CONSULTATION

The Azerbaijan government has applied to TACIS for counsel in privatization of energy grids of the "AzerEnergy" JSC. TACIS executives are currently considering the appeal as part of the "Assistance in restructuring of Azerbaijan's electrical energy sector".

A source from TACIS told AssA-Irada Monday that correct grouping of "AzerEnergy" enterprises will further boost foreign interest in the sector.

Denationalization of "AzerEnergy" grids calls for their zonal division in 5 groups: Baku, Nakhchivan, North (Sumgayit), South (Ali Bayramli) and West (Ganja).

2,000 VACANCIES TO BE OFFERED IN APRIL

The first job fair this spring will be held at the Indoor Games Palace on April 24-25 with 2,000 vacancies to be offered, according to the deputy head of the senior employment department under the Ministry of Labor and Social Security of the Population Rasim Hasanov. Job fairs have been held in Azerbaijan for 4 years, as 19,000 people have found jobs.

Starting from 2001, job fairs will be held in spring and fall in Baku and once a year on the countryside.

POPULATION HARD CURRENCY DEPOSITS UP

According to preliminary estimates, as of early March 2001 population deposits in banks constituted around AZM430 billion, or 55% over last year. 85% of deposits are kept in hard and 15% in soft currency. The growth has been attained largely to hard currency deposits.

56% of deposits are entrusted to private banks.